Petrofac secures new bank debt, wins $370m Basra contract

Petrofac has secured $300m new term-loan from its banks, due to mature in 2020, and has won a near-$370m contract in Iraq.

With Petrofac's $677m 3.40% bond due to mature in October 2018, these new facilities provide additional liquidity and will allow the FTSE 250 company to reduce use of its existing revolving credit facility.

At a half-year update in June, Petrofac said it expected net debt to have grown to roughly $0.9bn by 30 June from $0.6bn at the end of last year, but expected it to decrease in the second half. Liquidity is expected to be around $1.3bn, down from $1.6bn over the previous six months.

Petrofac remains the focus of an ongoing Serious Fraud Office investigation as part of an inquiry into Monaco-based Unaoil over suspected bribery, corruption and money laundering.

Later on Monday, Petrofac revealed that it had won a further lump-sum contract from Basra Oil Company to expand a central processing facility in the Majnoon Field, Southern Iraq, following an original engineering, procurement and construction contract in 2011 to build the facility.

Under the terms of the near-three-year contract, the EPC project includes providing two oil processing trains, able to process 200,000 barrels of oil per day.